On May 22, Korea Music Copyright Association (Komca) Published in Deep-dive report on the national and international music streaming marketsBy affirming that Korean songwriters receive a lower share of streaming entrances compared to their counterparts in other advanced markets.
According to the report, Korean copyright owners receive only 10.5% of streaming revenue. On the contrary, songwriters in the United States receive 12.3%, in the UK 16%and 15%in Germany.
In the meantime, the share of revenues claimed by national streaming platforms such as Melon stands up to 35%significantly higher than average under 30% Seen in countries such as the United States, the United Kingdom, Germany and Japan.
Structural inefficiencies and double expenses
Komca recognized these problems, explaining that in 2008 the platforms claimed as much as 57.5% Revenue while copyright holders received only 5%. Although there have been some improvements, the Association observed that the Korea revenue structure still favors platforms and intermediaries.
“Efforts are made to correct this, but requires consensus between the interested parties and the approval of the Ministry of Culture, Sport and Tourism, making the reform difficult”. He said a Komca spokesman.
A key problem, according to professionals, is the Number of intermediaries involved in the distribution of Royalties. A representative for the independent label, Mr. B, underlined that, unlike other countries, in which artists generally receive payments through a single publisher, in Korea, the royalties must pass through Distributors and multiple copyright organizationsEveryone takes a tax.
Korea has several organizations of these, including Komca, the Korea Music Perconers ‘Association and the Korea Entertainment Producers’ Association. Each deduces Management commissionssignificantly reducing the final payment to the creators.
“In many advanced countries, copyright organizations usually manage only Royalties Performancedo not entered digital music streaming “, Mr. B added.
It is believed that the withdrawal of Rose from Komca is closely connected to this problem of the revenue structure. For international earnings, he already pays commissions to foreign publishers. If he remains in Komca, he must also pay taxes to the Korean rights body on the remaining amount –essentially double payment For the same royalties.
For example, if he earns 100 krw through a direct agreement with Apple Music, passing through Korean distributors could reduce his revenues to 60-70 krwdue to composed commissions.
Systemic challenges and power imbalances
Experts notice that solving this problem will not be easy. The conflicting interests between entertainment agencies, distributors and platforms involve significant obstacles.
“Agencies cannot communicate directly with platforms due to the control of distributors. Even if payment rates are dissatisfied, they cannot express complaints”, Mr. B explained.
Another employee with over 20 years of experience in the music sector, Mr. C, added that the main distributors such as Kakao often translate into marginalization. Agencies have no other choice than to respect to ensure the visibility and streaming of revenue for their artists.
The forward path: structural reform
The consent in the sector is that simplifying the distribution structure is essential to increase the earnings for copyright owners and maintain the sustainability of the global k-pop.
While Korean music continues to attract global fans, there is a growing recognition that creators, the foundation of this success, deserve a more equitable share. It remains to be seen if that change arrives soon.
